Tonen buys 99 pct of refinery stake from ExxonMobil for $3.94 bln

UPDATE 1- Sun, Jan 29 04:41 AM EST * ExxonMobil to retain 22 pct of voting shares in TonenGeneral * Deal to be closed on June 1 TOKYO, Jan 30 (Reuters) - Japan's second-largest refiner TonenGeneral Sekiyu KK said on Monday it is considering how to reduce its oil refining capacity, taking into account how fast domestic demand is projected to fall. CORRECTED-UPDATE 1-Tonen: $4 bln buyout of Exxon stake not due to govt Mon, Jan 30 00:22 AM EST * Japan regulation wasn't trigger for move * ExxonMobil to give up control for $3.9 bln TOKYO, Jan 30 (Reuters) - Japanese refiner TonenGeneral Sekiyu KK said on Monday its decision to buy out a controlling stake in it held by U.S. oil major ExxonMobil for nearly $4 billion was not triggered by Tokyo's moves to force industry re-alignment. TonenGeneral, Japan's second-biggest refiner, said at a news conference that the buyout was to improve efficiency, and it is considering how to reduce refining capacity amid falling domestic demand. Japanese government rules effectively require TonenGeneral to either build a new secondary unit or cut its crude refining capacity. ExxonMobil will retain a 22 percent voting share in the Japanese oil giant, down from 50 percent, with the 302 billion yen ($3.94 billion) transaction set to be completed by June 1, TonenGeneral said on Sunday, confirming a Reuters report. TonenGeneral officials also told Monday's briefing that it has no plans to form capital alliances with state-run oil companies in the Middle East. Showa Shell Sekiyu is owned 15 percent by state oil giant Saudi Aramco, while Cosmo Oil Co is owned one-fifth by the Abu Dhabi government. Oil demand in Japan, the world's No.3 consumer, has been falling steadily for more than a decade, now standing at about 3.4 million barrels per day (bpd) from a record 4.2 million bpd in 1999. The TonenGeneral move could encourage realignment among Japan's oil refiners, which have been cutting capacity to cope with falling demand caused by a weak economy and a shift to more efficient and environmentally friendly forms of energy. TonenGeneral, which imports and distributes Exxon oil in Japan, ranks as the country's No.2 refiner behind JX Holdings . ============== TOKYO, Jan 29 (Reuters) - Japan's second largest refiner TonenGeneral Sekiyu KK said on Sunday it will buy 99 percent of the shares in ExxonMobil's Japanese unit, ExxonMobil Yugen Kaisha, for 302 billion yen ($3.94 billion) to improve efficiency. ExxonMobil will give up its controlling stake in TonenGeneral, but retain a 22 percent voting share in the Japanese oil giant, completing the transaction by June 1, 2012, a statement said. ExxonMobil currently holds about 50 percent of the Japanese refiner. TonenGeneral said it has no plans to change a 38 yen per share dividend forecast for 2011 and expects to maintain the same dividend in 2012. The deal marks a de facto retreat from the world's third-largest economy by ExxonMobil, which is focusing its resources on emerging markets and the development of natural resources. The move could also spark realignment among Japan's oil refiners, which have been cutting capacity to cope with falling demand caused by a weak economy and a shift to more efficient and environmentally friendly forms of energy, analysts have said. "Oil demand in Japan has declined in recent years and the domestic operating environment has been characterized by continuous pressure on both margins and volumes," TonenGeneral said. The deal is aimed at enabling the group to cope with the challenging environment more effectively, it said. Reuters reported on Saturday that ExxonMobil was in talks to sell most of its stake back to TonenGeneral. TonenGeneral, which imports and distributes ExxonMobil oil in Japan, ranks as the country's No. 2 refiner behind JX Holdings. Smaller rivals include Idemitsu Kosan Co , Cosmo Oil and Showa Shell. TonenGeneral will seek funds from Sumitomo Mitsui Banking Corp, Sumitomo Trust Banking, Bank of Tokyo Mitsubishi UFJ and Mitsubishi Trust Bank to buy back the stake, industry sources told Reuters. ============ MISS: $9.4 Billion In Earnings Not Enoug... PFC30 17 This came up when I just cut and pasted this article... kurdish exxon iraq Look at the photo infor(right click)...Weird...? MISS: $9.4 Billion In Earnings Not Enough For Exxon Mobil http://www.businessinsider.com/exxon-earnings-q4-2012-1 Exxon Mobil missed earnings expectations this morning, when it reported net income of $9.4 billion, or $1.97 per share. Analysts polled by Bloomberg had expected earnings per share of $1.98. The oil giant also missed revenue forecasts by nearly $3 billion, coming in at $121.6 billion during the fourth quarter. “ExxonMobil recorded strong results while investing at record levels to develop new supplies of energy that are critical to meeting growing world demand, and supporting economic recovery and growth," the company's chairman Rex Tillerson said. Capital and exploration costs during the period were $10 billion, while oil-equivalent production declined 9 percent compared to the fourth quarter of 2010. Read more: http://www.businessinsider.com/exxon-earnings-q4-2012-1#ixzz1l2gxIJDs